USDJPY has been bullish and trading above the near term uptrend line support since 27th September, helped by strengthening of the dollar. Yesterday we saw the release of the US Markit Manufacturing PMI for October, rose to 53.2, surpassed expectations of 51.5, hit a 12-month high. The outperforming figure pushed USDJPY up and tested the resistance level at 104.50. Yet the level was not broken, as 104.50 – 105.00 is the short term major resistance zone. In addition, the 4 hourly Stochastic Oscillator is around 85, the bullish momentum of USDJPY will likely be restrained at this level, unless the dollar keeps on firming. The resistance level is at 104.50, followed by 105.00 and 105.50. The support line is at 104.00, followed by 103.50 and 103.00. Keep an eye on the US Consumer Confidence for October, to be released at 14:00 GMT this afternoon. With better-than-expected reading, USDJPY will likely rally and test the resistance at 104.50 again. With lower-than-expected reading, USDJPY will likely pull back and test the support level at 104.00. The morning we saw the release of German IFO Business Climate, Current Assessment and Expectations figures for October, all better-than-expectations, and all hit the highest level since May 2014. The short term major resistance zone for the DAX index is between 10750 – 10800. The superb figures released today helped the index break the resistance level at 10750, testing the next resistance level at 10800 then retraced. The selling pressure above the resistance level at 10850 is very heavy, the bullish momentum will likely be restrained at the level. In addition, the 4 hourly and daily Stochastic Oscillator are both at a high level, suggesting overbought. Be aware of a retracement at the level at 10850 prior to the next rally. The resistance level is at 10800, followed by 10850 and 10900. The support line is at 10750, followed by 10700 and 10650. Keep an eye on the German GFK Consumer Confidence Survey for November, to be released tomorrow at 06:00 GMT. With better-than-expected reading, the DAX index will likely rally and test the resistance levels. With lower-than-expected reading, the DAX index will likely pull back and test the support levels. Source: FX Pro Market Snapshot
USDJPY has been bullish and trading above the near term uptrend line support since 27th September, helped by strengthening of the dollar. Yesterday we saw the release of the US Markit Manufacturing PMI for October, rose to 53.2, surpassed expectations of 51.5, hit a 12-month high. The outperforming figure pushed USDJPY up and tested the resistance level at 104.50. Yet the level was not broken, as 104.50 – 105.00 is the short term major resistance zone. In addition, the 4 hourly Stochastic Oscillator is around 85, the bullish momentum of USDJPY will likely be restrained at this level, unless the dollar keeps on firming. The resistance level is at 104.50, followed by 105.00 and 105.50. The support line is at 104.00, followed by 103.50 and 103.00. Keep an eye on the US Consumer Confidence for October, to be released at 14:00 GMT this afternoon. With better-than-expected reading, USDJPY will likely rally and test the resistance at 104.50 again. With lower-than-expected reading, USDJPY will likely pull back and test the support level at 104.00. The morning we saw the release of German IFO Business Climate, Current Assessment and Expectations figures for October, all better-than-expectations, and all hit the highest level since May 2014. The short term major resistance zone for the DAX index is between 10750 – 10800. The superb figures released today helped the index break the resistance level at 10750, testing the next resistance level at 10800 then retraced. The selling pressure above the resistance level at 10850 is very heavy, the bullish momentum will likely be restrained at the level. In addition, the 4 hourly and daily Stochastic Oscillator are both at a high level, suggesting overbought. Be aware of a retracement at the level at 10850 prior to the next rally. The resistance level is at 10800, followed by 10850 and 10900. The support line is at 10750, followed by 10700 and 10650. Keep an eye on the German GFK Consumer Confidence Survey for November, to be released tomorrow at 06:00 GMT. With better-than-expected reading, the DAX index will likely rally and test the resistance levels. With lower-than-expected reading, the DAX index will likely pull back and test the support levels.
Source: FX Pro Market Snapshot
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